Sl Green Realty Corp · NYSE:SLG
Sl Green Realty — Q2 2024 Earnings Presentation
53 slides from Sl Green Realty's earnings presentation, Jul 18, 2024
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Slide 2: Company description and forward-looking statements
SL Green Realty Corp. is a self-managed real estate investment trust, or Forward-looking Statements REIT, with in-house capabilities in property management, acquisitions and This supplemental reporting package includes certain statements that may be dispositions, financing, development, redevelopmen
Slide 3: Table of Contents
TABLE OF CONTENTS Definitions 4 Highlights 6 - 11 Comparative Balance Sheets 12 Comparative Statements of Operations 14 Comparative Computation of FFO and FAD 15 Consolidated Statement of Equity 16 Joint Venture Statements 17 - 18 Selected Financial Data 20 - 23 Debt Summary Schedule 24 - 26 Derivat
Slide 4: Definitions
DEFINITIONS Annualized cash rent - Monthly base rent and escalations per the lease, excluding Funds from Operations (FFO) - FFO is a widely recognized non-GAAP financial measure concessions, deferrals, and abatements as of the last day of the quarter, multiplied by 12. of REIT performance. The Compa
Slide 5: Definitions
DEFINITIONS Same-Store Properties (Same-Store) - Properties owned in the same manner during both the current and prior year, excluding development and redevelopment properties that are not stabilized for both the current and prior year. Changes to Same-Store properties in 2023 are as follows: Added
Slide 6: Second Quarter 2024 Highlights
SECOND QUARTER 2024 HIGHLIGHTS Unaudited NEW YORK, July 17, 2024 - SL Green Realty Corp. (the "Company") (NYSE: During the second quarter of 2024, the Company signed 38 office leases in its SLG) today reported a net loss attributable to common stockholders for the Manhattan office portfolio totaling
Slide 7: Second Quarter 2024 Highlights
SECOND QUARTER 2024 HIGHLIGHTS Unaudited • Three new leases for a total of 37,856 square feet at 220 East 42nd that was originated in the second quarter and is accounted for as an Street; unconsolidated joint venture. The portfolio had a weighted average current yield of 7.5%, or 8.8% as of June 30,
Slide 8: Second Quarter 2024 Highlights
SECOND QUARTER 2024 HIGHLIGHTS Unaudited Special Servicing and Asset Management Activity Research analysts who wish to participate in the conference call must first register at https://register.vevent.com/register/ The Company continues to grow its special servicing and asset management BIa4aa7c3f3c
Slide 9: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Earnings Per Share Net income (loss) available to common stockholders (EPS) - diluted $ (0.04) $ 0.20 $ (2.45) $ (0.38) $ (5.63) Funds from oper
Slide 10: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Selected Balance Sheet Data Real estate assets before depreciation $ 6,264,757 (1) $ 6,260,955 (1) $ 6,102,864 $ 6,039,003 $ 5,963,895 Investmen
Slide 11: Key Financial Data
KEY FINANCIAL DATA (1) Manhattan Properties Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Selected Operating Data Property operating revenues $ 145,369 $ 136,869 $ 145,542 $ 145,547 $ 181,045 Property operatin
Slide 12: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Assets Commercial real estate properties, at cost: Land and land interests $ 1,134,432 $ 1,150,681 $ 1,092,671 $ 1,090,370 $ 1,071,469 Building and improvements 3,743,316 3,729,884 3,
Slide 13: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Liabilities Mortgages and other loans payable $ 1,649,892 $ 1,701,378 $ 1,497,386 $ 1,518,872 $ 1,520,313 Unsecured term loans 1,250,000 1,250,000 1,250,000 1,250,000 1,675,000 Unsecu
Slide 14: Comparative Statement of Operations
COMPARATIVE STATEMENT OF OPERATIONS Unaudited (Dollars in Thousands Except Per Share) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2024 2023 2024 2024 2023 Revenues Rental revenue, net $ 135,563 $ 165,651 $ 128,203 $ 263,766 $ 340,243 Escalation and reimbursement
Slide 15: Comparative Computation of FFO and FAD
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited (Dollars in Thousands Except Per Share) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2024 2023 2024 2024 2023 Funds from Operations Net (Loss) Income attributable to SL Green common stockholders $ (2,160) $ (360,19
Slide 16: Consolidated Statement of Equity
CONSOLIDATED STATEMENT OF EQUITY Unaudited (Dollars in Thousands) Accumulated Series I Other Preferred Common Additional Treasury Retained Noncontrolling Comprehensive Stock Stock Paid-In Capital Stock Deficit Interests Income Total Balance at December 31, 2023 $ 221,932 $ 660 $ 3,826,452 $ (128,655
Slide 17: Joint Venture Statements
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) As of June 30, 2024 March 31, 2024 December 31, 2023 Total SLG Share Total SLG Share Total SLG Share Assets Commercial real estate properties, at cost: Land and land interests $ 4,222,970 $ 2,11
Slide 18: Joint Venture Statements
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) Three Months Ended June 30, 2024 June 30, 2023 March 31, 2024 Total SLG Share Total SLG Share Total SLG Share Revenues Rental revenue, net $ 302,425 $ 155,563 $ 284,782 $ 147,455 $ 300
Slide 19: Joint Venture Statements
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) Six Months Ended June 30, 2024 June 30, 2023 Total SLG Share Total SLG Share Revenues Rental revenue, net $ 603,100 $ 314,842 $ 610,446 $ 314,642 Escalation and reimbursement revenues
Slide 20: Selected Financial Data
SELECTED FINANCIAL (1) DATA Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2024 2023 2024 2024 2023 Net Operating Income (1) $ 77,412 $ 100,682 $ 68,338 $ 145,750 $ 205,977 SLG share of NOI from unconsolidated J
Slide 21: Same Store Net Operating Income - Wholly Owned and Consolidated JVs
SELECTED FINANCIAL DATA Same Store Net Operating Income - Wholly Owned and Consolidated JVs Unaudited (Dollars in Thousands) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2024 2023 % 2024 2024 2023 % Revenues Rental revenue, net $ 124,933 $ 131,
Slide 22: Same Store Net Operating Income - Unconsolidated JVs
SELECTED FINANCIAL DATA Same Store Net Operating Income - Unconsolidated JVs Unaudited (Dollars in Thousands, SLG Share) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2024 2023 % 2024 2024 2023 % Revenues Rental revenue, net $ 116,594 $ 122,061
Slide 23: Same Store Net Operating Income
SELECTED FINANCIAL DATA Same Store Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2024 2023 % 2024 2024 2023 % Revenues Rental revenue, net $ 124,933 $ 131,114 (4.7)% $ 129,116 $ 254,049 $ 265
Slide 24: Debt Summary Schedule
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) Principal 2024 Current Final Principal Ownership Outstanding Principal Maturity Maturity Due at Fixed rate debt Interest (%) 6/30/2024 Coupon (1) Amortization Date Date (2) Maturity Secured fixed rate debt 420 Lexington Avenue 100.0
Slide 25: Debt Summary Schedule - Unconsolidated JVs
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) Principal Outstanding 2024 Principal Current Final Principal Ownership 6/30/2024 Amortization Maturity Maturity Due at Maturity Fixed rate debt Interest (%) Gross Principal SLG Share Coupon (1) (SLG Share) Date Date (2) (SLG S
Slide 26: Debt Composition and Corporate Debt Covenants
DEBT COMPOSITION AND CORPORATE DEBT COVENANTS Unaudited (Dollars in Thousands) Composition of Debt Core Portfolio Alternative Strategy Portfolio Total Fixed Rate Debt Consolidated $ 3,039,399 $ — $ 3,039,399 SLG Share of JV 5,681,517 539,178 6,220,695 Total Fixed Rate Debt $ 8,720,916 91.7% $ 539,17
Slide 27: Derivative Summary Schedule
DERIVATIVE SUMMARY SCHEDULE Unaudited (Dollars in Thousands) Consolidated Interest Rate Derivatives Ownership Notional Value Fair Value Secured Debt Interest (%) 6/30/2024 6/30/2024 Instrument (1) Strike Rate (1) Effective Date Maturity Date 10 East 53rd Street 55.0 $205,000 $1,387 Cap 4.00 % Februa
Slide 28: Summary of Lease Liabilities
SUMMARY OF LEASE LIABILITIES Unaudited (Dollars in Thousands) 2024 Scheduled 2025 Scheduled 2026 Scheduled 2027 Scheduled Lease Year of Final Property Cash Payment (1) Cash Payment (1) Cash Payment (1) Cash Payment (1) Liabilities (2) Expiration (3) Consolidated Lease Liabilities (SLG Share) Operati
Slide 29: Debt and Preferred Equity Investments
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands) Weighted Average Book Weighted Average Weighted Average Yield (1) (2) Book Value Value During Quarter Yield During Quarter At End Of Quarter (3) 6/30/2023 $ 636,476 $ 645,812 5.83% 6.07% Debt investment originations/fundings/accr
Slide 30: Debt and Preferred Equity Investments
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) Book Value Senior Weighted Average Weighted Average Weighted Average Yield Floating Type of Investment rate Fixed rate Total Financing Exposure PSF (1) Yield During Quarter (2) At End Of Quarter (2
Slide 31: Debt and Preferred Equity Investments
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) Book Value (1) Property Senior Yield At End (2) Investment Type 6/30/2024 Type Location Financing Last $ PSF Fixed/Floating Of Quarter (3) Preferred Equity $ 205,208 (4) Office Manhattan $ 203,189
Slide 32: Selected Property Data - Manhattan Operating Properties
SELECTED PROPERTY DATA Manhattan Operating Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total June 30, 2024 March 31, 2024 Cash Rent Tenants Interest SubMarket Ownership Square Feet (1) Sq. Feet % % % % SLG Share Properties (%) Occupied (2) Leased (3) Occup
Slide 33: Selected Property Data - Retail, Residential and Suburban
SELECTED PROPERTY DATA Retail, Residential and Suburban Operating Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total June 30, 2024 March 31, 2024 Cash Rent Tenants Properties Interest SubMarket Ownership Square Feet (1) Sq. Feet % % % % SLG Share (%) Occupi
Slide 34: Selected Property Data - Development and Alternative Strategy
SELECTED PROPERTY DATA Development / Redevelopment, Alternative Strategy Portfolio & Construction in Progress Properties Unaudited (Dollars in Thousands) Real Estate Annualized Contractual Book Total Ownership % of Total June 30, 2024 March 31, 2024 Cash Rent Value, Net Tenants Properties Interest S
Slide 35: Selected Property Data - Retail Properties
SELECTED PROPERTY DATA Retail Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total June 30, 2024 March 31, 2024 Cash Rent Tenants Properties Interest SubMarket Ownership Square F
Slide 36: Selected Property Data - Continued
SELECTED PROPERTY DATA - CONTINUED Retail Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total June 30, 2024 March 31, 2024 Cash Rent Tenants Properties Interest SubMarket Owners
Slide 37: Largest Tenants by SLG Share of Annualized Cash Rent
LARGEST TENANTS BY SLG SHARE OF ANNUALIZED CASH RENT Unaudited (Dollars in Thousands Except Per SF) Lease Annualized % of SLG Share of Annualized Investment Ownership Expiration Total Rentable Contractual SLG Share of Annualized Annualized Contractual Contractual Grade Credit Tenant Name Property In
Slide 38: Manhattan Tenant Diversification
MANHATTAN TENANT DIVERSIFICATION Unaudited SLG Share of Annualized Contractual Cash Rent (1) Square Feet Leased (1) Financial Services 41% Financial Services 40% Business Services 2% Manufacturing 2% Manufacturing 2% Business Services 3% Medical 2% Medical 3% Government/Non Profit 3% Retail 2% Other
Slide 39: Leasing Activity - Manhattan Operating Properties
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Available Space Unaudited Escalated Activity Building Address # of Leases Square Feet (1) Rentable SF Rent/Rentable SF ($'s)(2) Available Space at 3/31/24 3,269,814 Space which became available during the Quarter (3): Office One Vanderbilt Avenue 1 6
Slide 40: Leasing Activity - Manhattan Operating Properties
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Commenced Leasing Unaudited New Cash Rent / Prev. Escalated Rent/ Free Rent Activity Building Address # of Leases Term (Yrs) Square Feet (1) Rentable SF Rentable SF(2) Rentable SF(3) TI / Rentable SF # of Months Available Space 3,425,046 Office One V
Slide 41: Lease Expirations - Manhattan Operating Properties
LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES Office, Retail and Storage Leases Unaudited SLG Share SLG Share Annualized Contractual Rentable Square Rentable Square Annualized Contractual Annualized Contractual Cash Rent Per Square Current Weighted Number of Expiring Footage of Expiring Footage
Slide 42: Lease Expirations - Retail Leases
LEASE EXPIRATIONS Retail Leases Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Wholly-Owned and Consolidated JV's Unaudited SLG Share Annualized Contractual SLG Share Annualized Contractual Annualized Contractual Cash Rent Per Square Number of Expiring Re
Slide 43: Lease Expirations - Retail Leases, Unconsolidated JVs
LEASE EXPIRATIONS Retail Leases Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unconsolidated JV's Unaudited SLG Share Annualized Contractual SLG Share Annualized Contractual Annualized Contractual Cash Rent Per Square Number of Expiring Rentable Square F
Slide 44: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 6/30/2024 2001 - 2024 Acquisitions Jun-01 317 Madison Avenue Grand Central 100
Slide 45: Summary of Real Estate Disposition Activity
SUMMARY OF REAL ESTATE DISPOSITION ACTIVITY Manhattan Office Unaudited (Dollars in Thousands) Gross Asset Valuation Property Submarket Interest Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2001 - 2024 Dispositions Jan-01 633 Third Ave Grand Central North 100.0% Fee Interest 40,623 $ 13,250
Slide 46: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Retail, Residential, Development / Redevelopment and Land Unaudited (Dollars in Thousands) Interest Gross Asset Occupancy (%) Property Type of Property Submarket Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 6/30/2024 2005 - 202
Slide 47: Summary of Real Estate Disposition Activity
SUMMARY OF REAL ESTATE DISPOSITION ACTIVITY Retail, Residential, Development / Redevelopment, Land and Alternative Strategy Portfolio Unaudited (Dollars in Thousands) Interest Gross Asset Valuation Property Type of Property Submarket Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2011 - 2023
Slide 48: Summary of Real Estate Acquisition/Disposition Activity
SUMMARY OF REAL ESTATE ACQUISITION/DISPOSITION ACTIVITY Suburban Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 6/30/2024 2007 - 2024 Acquisitions Jan-07 300 Main Street Stamford,
Slide 49: Non-GAAP Disclosures and Reconciliations
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) Funds Available for Distribution (FAD) FAD is a non-GAAP financial measure that is calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight li
Slide 50: Non-GAAP Disclosures and Reconciliations
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Funds From Operations (FFO) Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net (loss) income attributable to SL Gre
Slide 51: Non-GAAP Disclosures and Reconciliations
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Three Months Ended Six Months Ended Operating income and Same-store NOI Reconciliation June 30, June 30, 2024 2023 2024 2023 Net income (loss) $ 1,959 $ (379
Slide 52: Research Analyst Coverage
RESEARCH ANALYST COVERAGE EQUITY COVERAGE Firm Analyst Phone Email B of A Securities Camille Bonnel (416) 369-2140 camille.bonnel@bofa.com Barclays Brendan Lynch (212) 526-9428 brendan.lynch@barclays.com BMO Capital Markets Corp. John P. Kim (212) 885-4115 JohnP.Kim@bmo.com BTIG Thomas Catherwood (2
Slide 53: Executive Management
EXECUTIVE MANAGEMENT Marc Holliday Neil H. Kessner Chairman, Chief Executive Officer and Executive Vice President, General Interim President Counsel - Real Property Matthew J. DiLiberto Maggie Hui Chief Financial Officer Chief Accounting Officer Andrew S. Levine Harrison Sitomer Chief Legal Officer